BILL NUMBER: AJR 58	CHAPTERED  08/10/00

	RESOLUTION CHAPTER   102
	FILED WITH SECRETARY OF STATE   AUGUST 10, 2000
	ADOPTED IN ASSEMBLY   AUGUST 7, 2000
	ADOPTED IN SENATE   JUNE 29, 2000
	AMENDED IN SENATE   JUNE 8, 2000

INTRODUCED BY   Assembly Member Firebaugh
   (Coauthors:  Assembly Members Bock, Keeley, Longville, Lowenthal,
and Machado)
   (Coauthor:  Senator Murray)

                        APRIL 24, 2000

   Assembly Joint Resolution No. 58--Relative to brownfield site
cleanup financing.


	LEGISLATIVE COUNSEL'S DIGEST


   AJR 58, Firebaugh.  Brownfield sites cleanup.
   This measure would memorialize the President and the Congress of
the United States to authorize the use of tax-exempt private activity
bonds to finance the assessment, acquisition, and remediation of
brownfield sites.




   WHEREAS, It is currently estimated that there are between 67,000
and 119,000 sites contaminated with hazardous substance releases,
referred to as "brownfield sites," throughout the state; and
   WHEREAS, Brownfield sites in the state vary widely in character
and level of hazardous substance contamination, and include old
manufacturing sites, gas stations with leaking underground storage
tanks, buildings with asbestos and lead contamination, abandoned
industrial and manufacturing facilities, and former landfill sites;
and
   WHEREAS, Many of the undeveloped brownfield sites in the state are
located in communities with pressing economic needs that are
suffering the effects of persistent and pervasive disinvestment and
underinvestment of capital, with unproductive brownfield sites
presenting a significant impediment to revitalization of these
communities; and
   WHEREAS, Brownfield sites in the state may also pose significant
health and safety risks to local communities, including water table
contamination and airborne particles originating at these sites; and
   WHEREAS, With proper remediation, these brownfield sites could be
brought back into beneficial use; and
   WHEREAS, The remediation and redevelopment of brownfield sites
would benefit the state's communities by reducing environmental
degradation, protecting public health and safety, revitalizing
economically struggling neighborhoods, facilitating sustainable
development patterns, and reducing growth pressures at the urban
fringe; and
   WHEREAS, The cost of remediation is one of the principal reasons
that many of these brownfield sites remain abandoned, idle, or
underutilized; and
   WHEREAS, Sufficient, appropriately priced, capital is not
currently available to finance the remediation and redevelopment of
the state's brownfield sites; and
   WHEREAS, Tax-exempt private activity bond financing would be an
invaluable tool for assisting in the remediation of privately held
brownfield sites by providing interest costs below those afforded by
taxable bonds or conventional loans; and
   WHEREAS, Under current federal law, expenditures for the
assessment, acquisition, and remediation of brownfield sites
generally do not qualify for tax-exempt private activity financing;
now, therefore, be it
   Resolved by the Assembly and Senate of the State of California,
jointly, That the Legislature of the State of California respectfully
memorializes the President and the Congress of the United States,
during the 106th Congress, to amend the Internal Revenue Code to
authorize the use of tax-exempt private activity bonds to finance the
assessment, acquisition, and remediation of brownfield sites; and be
it further
   Resolved, That the Chief Clerk of the Assembly transmit copies of
this resolution to the President and Vice President of the United
States, to the Speaker of the House of Representatives, and to each
Senator and Representative from California in the Congress of the
United States.
